| China in March 31,2010 began to conduct margin-trading pilot,the introduction of margin trading signs China’s stock market formally introduced a short selling mechanism.Foreign studies have found that short selling mechanism can effectively constrain the behavior of managers,with a certain role in corporate governance.But different from foreign mature securities market,China’s short selling time is short,at this stage is still in the pilot stage,not fully liberalized;as a transition economy and emerging economies,China’s capital market is not perfect,It is necessary to study and explore the system to regulate its development.At present,the study of margin trading mainly focuses on the consequences of the implementation of margin trading,and most of them focus on the macro impact on the securities market,the impact of the implementation of margin trading on micro-enterprise behavior Still relatively few.The introduction of margin trading will inevitably lead to the change of environment of capital market and the behavior of the participants.In the presence of margin trading mechanism,short selling as an informed transaction,investors will actively take the initiative to collect,analyze the "bad news",selected to short the target company,"Bad news" with the role of short selling mechanism will enlarge the impact on listed companies.In the face of short selling shocks and ex post penalties,management has to adjust the corporate information disclosure strategy to improve the quality of accounting information.In summary,it is not difficult to find that the introduction of short selling mechanism as a change in the market system environment,from the outside of the company to produce supervision functions to enhance corporate governance.Therefore,this article takes the accounting information quality as the breakthrough point,investigates the influence of the securities mechanism on the micro enterprise behavior.Through the empirical analysis,it is found that after the listed companies became the standard of selling securities,the quality of accounting information is obviously improved compared with the stock which can not be short.Moreover,the corporate governance role of the short selling mechanism is more pronounced for companies with less developed and higher governance levels in the region’s external financial markets.By further examining the common role of the external market environment and the internal equity balance of the company,it is found that the quality of accounting information can be significantly improved in the case of companies with high equity balance,regardless of the external market environment.It can be seen that the short selling mechanism and the external market environment as external governance factors,both on the corporate governance is a substitute for each other;internal governance is to improve the quality of accounting information disclosure of internal factors,market factors such as external factors to play a role must depends on the effectiveness of internal governance.This paper provides new empirical evidence for the long-term controversy on the economic consequences of the securities short selling mechanism,and also provides a theoretical reference for China to improve the mechanism of short selling of securities and further deepen the reform of the financial system. |
